What types of licenses does a business need?

In California, a business must obtain a number of licenses or permits depending on the type of business. These include a seller’s permit, a federal Employer Identification Number (EIN) from the IRS, a business license, and other licenses and permits that the business may need to operate legally. A seller’s permit is required for businesses that sell goods or services. This permit is also called a “retailer’s license” or “wholesale license” and it allows the business to buy goods or services without paying sales tax. The permit must be obtained from the California State Board of Equalization. A federal Employer Identification Number (EIN) is required for businesses that have employees, operate as a corporation or LLC, or file certain federal tax forms. It is issued by the IRS and is used to identify the business for tax purposes. Businesses must also obtain a business license from their local government. This allows the business to legally operate within the area and is obtained from the local city or county office. Depending on the type of business, the business may also need to obtain additional permits or licenses from the state or federal government. These may include special permits for professional services such as medical and legal services, as well as licenses for certain types of businesses such as restaurants and liquor stores. Ultimately, businesses in California must obtain the required licenses and permits in order to operate legally. Different businesses require different licenses and permits, so it’s important for business owners to research the requirements for their particular business.

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